Russia’s Energy Giant Asks For $42 Billion Loan

Russia’s state-controlled energy giant Rosneft has asked the Russian government for a $42bn (£25.2bn) loan, as it feels the impact of Western sanctions.

The government said it will consider the request from Igor Sechin, head of Rosneft, in the next two weeks.

Sanctions on Russia have limited Rosneft’s ability to raise funds.

Rosneft has requested the money from the National Wealth Fund, which finances state pensions.

The US imposed sanctions on Rosneft and Novatek, Russia’s second-largest gas producer, last month.

The US and EU have restricted sales of technology to the Russian oil industry.

‘Reassess their self-sufficiency’
Russia’s exports are almost all raw materials and about 60% of these are energy products.

David Spencer-Percival, chief executive of international energy recruitment firm Spencer Ogden, said: “[This is] the clearest sign yet that the Western sanctions are biting hard.

“Given the West’s reliance on the Russian energy industry, it is vital governments across Europe reassess their self-sufficiency. This is likely to prompt greater investment in renewable and alternative sources.”

The news was initially reported in Vedomosti, the Russian business daily. The paper quoted a letter from Russian Prime Minister Dmitry Medvedev, in which he asked officials to analyse the data.

via BBC

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza